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Hank Didier
Hank Didier
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Do Factoring Companies Deserve their Reputations?

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In the eyes of some structured settlement consultants and lawyers, factoring companies are regarded with scorn and spite for allegedly undoing the good that they’ve done for their clients. Sometimes that critique is fair, but, like any stereotype, it may not always be true. Structured settlements are good vehicles for long-term stability, but they aren’t for everybody all the time. Time passes and circumstances change. Whether hardship or opportunity strikes, clients with assets such as a structured settlement may be better off selling it for a reasonable discounted rate in order to gain access and reap the benefit of the cash now.

Are all factoring companies alike? Absolutely not. There are big investment houses that gobble up annuities and structured settlements at astronomical discount rates without regard to the seller. But there are also companies who want to be the alternative. The companies who encourage second bids can more likely be trusted as competitive bidders. In this internet age it’s hard to imagine someone not realizing the wealth of choice in any marketplace. But, once a predatory company gets a hook into a seller, he or she is often hounded to ink the deal without concern for the true needs and best interests of the seller.

Of course, in most states there are laws that require judicial approval of any structured settlement transaction, and the Courts are charged under such laws with considering whether the transaction, including the discount rate and the amount of fees and expenses charged, is fair and reasonable and in the best interest of the payee and his or her dependents. In concept this great, but, in reality, many deals do not get the scrutiny envisioned due to the simple fact that our court system is understaffed and overwhelmed. Thus, it is critical that sellers find trustworthy companies to work with in the first place should they want to examine whether selling their structured settlement is right for them.

If selling is the right or only option for a former Plaintiff or their family, then, your client must find a reputable company who will guide them through a fair and transparent process to allow them to know they have received a fair and reasonable lump sum of money now for the future payments they have decided to give up. Such companies do exist, as not all factoring companies are the same.

Plaintiff Attorney Hank Didier formed Vantage Capital Consultants to help former Plaintiffs who may need to sell their structured settlement or annuities, and give them a better choice. Vantageis a buyer of structured settlements and annuities, founded to provide sellers with a consultative, fair, and transparent approach in an otherwise predatory marketplace that lacks adequate protections.